Ex-Im Bank of the US commits $2.45 bn to India
The Export-Import Bank of the US has approved nine Indian financial institutions and made a $ 2.45 billion commitment under the India Infrastructure Facility for India's infrastructure projects and capital goods purchases. The Facility is available for long and medium term transactions and projects and provides for expedited processing and minimizes documentation, Mr. Raymond Ellis, Vice President, Strategic Initiatives Division of the Ex-Im Bank of the US, said.
The Indian FIs approved by the US Ex-Im Bank are India Infrastructure Finance Company Ltd.; Indian Renewable Energy Development Agency; IDBI; IDFC; IL&FS; PFC; PNB, SBI and ICICI Ltd.
At a meeting with Indian industry representatives organized by FICCI, Mr. Ellis said, the Ex-IM Bank has A current exposure to Indian borrowers of $ 7.2 billion in sectors such as aviation, telecom, oil & gas, heavy equipment sales and leases, medical equipment, services and energy.
Ex-Im Bank assists exporters by guaranteeing term financing to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services. With Ex-Im Bank's loan guarantee, international buyers are able to obtain competitive term financing from lenders when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years.
Under its Direct Loans facility, the Ex-Im Bank assists exporters by providing fixed-rate loans to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services.
Mr. Ashok Pasricha, Senior Engineer, US Ex-Im Bank outlined the special programmes of the Bank. These include Medical Equipment InitiativeC(MEI), Transportation Security Exports Program (T-SEP) and Environmental Exports Program (EEP).
Under the MEI, the Bank offers solutions to increase the export of medical equipment from U.S. companies to foreign borrowers that would not go forward without Ex-Im Bank support. The MEI includes creative financing structures and enhanced coverage.
Under the T-SEP Initiative, it provides enhanced financing support for U.S. exports that are related to international transportation security. Specifically, Ex-Im Bank will provide enhancements to its normal support for eligible transportation security transactions under its medium- and long-term insurance, guarantee and loan programs.
He said, the Ex-Im Bank was committed to increasing the level of support it provides to U.S. exporters of environmentally beneficial goods and services, as well as to U.S. exporters participating in environmental projects located internationally. To achieve this objective, Ex-Im Bank's Environmental Exports Program (EEP) provides enhanced levels of financial support for a broad range of renewable energy and other environmentally beneficial exports.
Mr. V K Topa, Advisor, FICCI, called upon Indian companies to look at the various financing options available for importing US products for their projects in India and take advantage of the funding options being offered by the US Ex-Im Bank.
Federation of Indian Chambers of Commerce and Industry